Feds Waller gets more specific
- policy is also about setting expectations for the entire rate path
- I am concerned markets don't think we can get inflation under control the next three – five years
- I would rather and the taper before raising interest rates
- We can get ahead and accelerate the taper
- My preference is to go fast on the taper
- If in January we double the pace of tapering, we would be done by beginning of April
- That would give us more policy space with rate hikes as early as Q2 2022
- We can't just sit around and wait for inflation to disappear
Sounds good to me. Will it fly with the Fed Chair (who ever that is) and the other Fed officials.
This week, more Fed members have tilted toward a more hawkish stance including Bostic, Evans (a dove) and NY Fed Pres. Williams.
